What is the status of Indian Company Shares which has not been transferred 12 yrs after selling?

Question

I had sold the shares in 1994 and received the money from my broker in due course after handing over the share certificates along with the relevant Transfer Certificate(TC). However,over 12 years till date I continued to receive Dividends for the same. In 1998 I even recd. Bonus Shares (1:1) and susequently dividends for the same. Now recently I got a legal letter from a supposed buyer who got it transferred, finally after a due process of revaliditation--the reason given for the delay as misplacement. It was not a Bad delivery as he could get it trasferred with the original TC even now. Now he is demanding, thro' this letter all his rights with regards to Dividends, Bonus etc. What is his legal status? What should I do? Veterans have advised me to ignore this letter as the fault lies with the Buyer and also there might have been any No.of Buyers down the line, he being the last and knowing this he might have got tempted to make the claim. What if some other buyer crops up later on?

Answer 1

You have handed over the shares to the broker and taken the selling price and the shares had been held by the buyer who had no transferred the shares into his name due to his own fault and not due to your any wrong doing under the eye of law. Hence you are not in any liable for any amount under any act of the India.You should ignore the letter. He cannot make any claim under the eye of law.

Answer 2

As u have got the Payment in 1994 itself, Ur right to that share has extinguished, U r getting the Bonus/dividend of the Share which are not suppossed to be yours, So it is the Purchaser at that times asset which is with you.
U should find that the original certificates have been transferred as yet or not.
The person to whom the original certificate has been transferred has the righ to demand from u, through his broker, through the SEBI. But, for this he will have to proof his purchase and details of this transaction, also the legal and valid cause for the shares not been transferred as yet.